China International Political Economy

General Motors Corp (GM) has announced it will start to export its China made cars to the US as soon as 2014 according to AP.

The China trade news estimates that GM will add as many as 50k in sales through China exports to the US.

Although the strategy is smart and leverages China’s comparative advantage of lower cost labor as compared to unionized Detroit, the US government may have a different view of the situation considering the current US China trade deficit and the US government’s ownership in the flailing auto giant.